A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years. Required: a. What will be the monthly payment on the loan? b. If this loan had a maturity of 30 years, what would be the monthly payment? (For all requirements, do not round intermediate calculations. round your final answers to 2 decimal places.) $ 1,388.00 a. Monthly payment - 10 years b. Monthly payment - 30 years 749.00 X

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years.
Required:
a. What will be the monthly payment on the loan?
b. If this loan had a maturity of 30 years, what would be the monthly payment?
(For all requirements, do not round intermediate calculations. round your final answers to 2 decimal places.)
$ 1,388.00 3
749.00 X
a. Monthly payment - 10 years
b Monthly payment - 30 years
Transcribed Image Text:A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years. Required: a. What will be the monthly payment on the loan? b. If this loan had a maturity of 30 years, what would be the monthly payment? (For all requirements, do not round intermediate calculations. round your final answers to 2 decimal places.) $ 1,388.00 3 749.00 X a. Monthly payment - 10 years b Monthly payment - 30 years
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